Anthem Biosciences IPO analysis

Anthem Biosciences IPO (initial public offering) will open for subscription on July 14, 2025, and close on July 16, 2025. Below is a breakdown of the CRDMO's strengths, weaknesses and growth prospects to help investors make an informed decision. Anthem Biosciences IPO in a nutshell Quality: Between FY23 and FY25, Anthem reported a three-year average ROE and ROCE of 21 and 22 per cent, respectively. Growth: Between FY23 and FY25, its revenue and net profit grew 32 and 8 per cent per annum, respectively. Valuation: At the upper price band of Rs 570, the stock is expected to be valued at a P/E and P/B ratio of around 71 times and 13 times, respectively. In comparison, its listed peers trade at a median P/E and average P/B ratio of 90 times and 12 times, respectively. Overview: The company is set to benefit from growing geopolitical tensions and rising labour costs in China, which are encouraging global pharmaceutical companies to diversify their supply chains. The proposed ‘US Biosecure Act’, which seeks to restrict US companies from using certain Chinese biotechnology services, is also likely to redirect demand towards countries like India. However, the competitive nature of the industry remains a risk for the company. About Anthem Biosciences Anthem Biosciences offers a wide range of customisable CRDMO (contract research, development and manufacturing organisation) services that support drug development from the early research stage to commercial manufacturing. They also make specialty ingredients (18 per cent revenue contribution) like enzymes, probiotics and biosimilars. The company gets nearly 84 per cent of its revenue from exports, primarily to North America and Europe. Strengths of Anthem Biosciences Integrated services: Anthem is India’s fastest-growing CRDMO, offering end-to-end solutions across drug discovery, development and manufacturing for both small molecules and biologics. Its integrated services cover NCEs (novel chemical compounds) and NBEs (innovative biologic drugs), helping clients shorten timelines and cut costs. Weaknesses of Anthem Biosciences Revenue concentration: The company received nearly 71 per cent of its FY25 revenue from just the top five customers. Any inability to retain key customers or decrease in